Anyone bought their shares?

Meslatt — Tue, 06 Oct 2020 18:38:42 +0800

"UEM Sunrise shares rose three sen to 39 sen and Eco World Development shares rose 1.5 sen to 41 sen."

A merger to emerge from tough times

Rakuten Trade Research vice-president Vincent Lau concurred that the proposed deal was a win-win for both companies and hoped the merger could be a catalyst for further mergers and acquisitions in the sector

PETALING JAYA: The prolonged market slump and tough economic conditions have led to UEM Sunrise Bhd proposing a merger with Eco World Development Group Bhd to consolidate their resources and capabilities.

The proposed merger, said UEM Sunrise in a letter to Eco World Development, would enhance the merged entity’s scale, diversification and execution capabilities to create a robust business platform for future development.

“We envisage that upon the completion of the proposed merger, the enlarged UEM Sunrise group will focus on property developments within Malaysia and the planned developments on land owned by UEM Sunrise outside of Malaysia.

“This will allow the enlarged UEM Sunrise group to stay focused on property development within Malaysia, ” it said.

The UEM Group Bhd had on Oct 2 submitted a letter to the respective boards of UEM Sunrise and Eco World Development proposing that they consider and deliberate on a potential merger between the two companies.

UEM Group, in a statement, said it had explored the possibility of a merger between 66.1%-owned UEM Sunrise and other property developers but believes the merits are stronger with Eco World Development.

“The proposed merger is expected to create one of Malaysia’s largest property companies, a best-in-class multi-product developer with strong capabilities in every segment of the industry to sustain long-term value creation and growth, ” it said.

UEM Group said a merger with a suitable partner with the right capabilities would help enhance UEM Sunrise’s value through synergistic geographical and product mix improvements.

Analysts concurred, saying that it was a win-win for both companies.

“Valuation-wise, Khazanah seems like getting a good deal, especially when Eco World International is delivering a few projects in 2020 and 2021, ” said Maybank Investment Research property analyst Wong Wei Sum.

“Also, unlike UEM Sunrise, Eco World’s landbank is more prime and ready for development without heavy upfront infrastructure cost. Hence, I do not view this as a bailout.

“As for Eco World, backing from Khazanah should help the company sail through the current property downcycle.

“However, my key concern is who will be leading the enlarged merged entity as this is important for the merged entity to be successful, ” she said.

Rakuten Trade Research vice-president Vincent Lau concurred that the proposed deal was a win-win for both companies and hoped the merger could be a catalyst for further mergers and acquisitions in the sector.

UEM Group said the board of directors and senior management of the enlarged UEM Sunrise would be led by a chairman who is an existing board member of UEM Sunrise.

“An integration committee will be set-up comprising representatives from both UEM Sunrise and Eco World and co-chaired by respective chairmen to discuss integration related matters, including composition of the boards as well as key management team, ” it said.

UEM Group hoped there would be no staff redundancies until the merger is completed. A new employee share option scheme for the enlarged UEM Sunrise is also proposed to be implemented under the merger.

It said the merger was also an opportunity for an existing government-linked company to be in partnership with the private sector to create one of the largest property developers in Malaysia, with a projected gross development value of RM173.2bil and a total landbank of more than 17,000 acres locally.

Should the merger go ahead with a share swap, UEM Group would remain the single largest shareholder of the enlarged UEM Sunrise with a 43% equity stake, while the substantial shareholders of Eco World will hold a 24.2% equity stake.

“Government-linked investment companies (including that of UEM Group) would hold a collective stake of more than 50.0%, ” it said.

Eco World has until Oct 30 to decide on whether to accept the merger offer. Should it do so, Eco World Development would be delisted from Bursa Malaysia after the merger is completed.

UEM Sunrise and Eco World International, of which UEM Sunrise will own a 27% stake, would retain their listing status.

The boards of the respective companies would deliberate on the merits of the proposal, and UEM Group said there was no certainty that the proposed merger will result in any binding agreement or obligations between the two companies.

“Should they eventually agree to enter into any agreements, the eventual transaction would be subject to, among others, the approvals by shareholders and regulatory bodies, ” it said.

UEM Sunrise shares rose three sen to 39 sen and Eco World Development shares rose 1.5 sen to 41 sen.

https://www.klsescreener.com/v2/news/view/7...rom-tough-times

Something happening at Hong Leong

Meslatt — Fri, 31 Jan 2020 18:50:33 +0800

For yearsss I've been putting my money in my Maybank. All I get is like... 2cents back per annum -__- I saw Hong Leong's Pay&Save account gives 3.0% p.a. interest. Looking to move to Hong Leong this 3rd Feb. Maybe I'll get an iPhone11 too since they hv a special discount on that day.

https://www.hlb.com.my/en/personal-banking/...promotions.html

Cronies in Malaysia Baharu?

Meslatt — Fri, 29 Nov 2019 17:29:47 +0800

Cronies are back at the forefront again. I dont know man... this 'new' malaysia feels remarkably similar to 1990s.

http://www.focusmalaysia.my/Mainstream/sye...ecw-uems-merger

Syed Mokhtar a key player in ECW-UEMS merger?

Three years ago, Tan Sri Liew Kee Sin was a jubilant man. After getting out of a corporate tussle involving property giant SP Setia Bhd, he immediately found his footing and made a mer- curial comeback through a pair of property ventures: EcoWorld Development Group Bhd (ECWD) and its sister EcoWorld International Bhd (ECWI).

Such was the brisk growth of the EcoWorld group of companies that Liew was confident of fielding questions from the local press. That was what he did on Jan 23, 2016. Among the earliest questions posed to Liew was how he obtained a plot of land for his maiden development.

Without hesitation, the property developer name-dropped one of the most important figures in Corporate Malaysia: Tan Sri Syed Mokhtar Albukhary.

Plan to grow 3 Malaysian start-ups to US$1b each

Thu, 01 Jan 1970 07:30:00 +0800

Plan to grow 3 Malaysian start-ups to US$1b each

Meslatt — Sat, 21 Sep 2019 23:42:06 +0800

Plan to grow 3 Malaysian start-ups to US$1b each

Axiata wants to create three unicorns parked under Axiata's digital business.

These three unicorn hopefuls are digital financial services Boost, digital advertising company ada, and digital platform Apigate.

(a unicorn is a tech start-up which reaches a value of US$1 bil)

http://read.focusmalaysia.my/ePaper/xml_ep...s/art_51374.htm

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Good prospects? Anyone got comment?

Lowyat.NET: Latest topics by Meslatt

Anyone bought their shares?

Something happening at Hong Leong

Cronies in Malaysia Baharu?

Plan to grow 3 Malaysian start-ups to US$1b each

Plan to grow 3 Malaysian start-ups to US$1b each